The ultimate tax-free transfer would be to inherit the property at a stepped-up basis.  

Say you are assuming a mortgage on a property that has $250k remaining balance, but the seller is asking and you've agreed to pay $300k. 

But I’ve come to realize in order to maximize the tax benefits and long-term earnings.

I usually only recommend those communities if the owner gets a lot of personal use at the property and wants to have the rest pretty much pay for itself, but not as a cash flow investment.Best of luck!

I owe $345,000. after paying the mortgage and all utilities I would cash flow $500/month. 

The rent to price ratio here almost matches the RTP ratio of the C class areas but the main trade off you experience with access to better tenants is that the taxes are higher. 

I want to pay that debt off and  renovate the houses.

Pay Dirt Flips is her new business!

(I'm thinking it has nothing to do with the replacement property.)Attached is a snippet of the flooring depreciation totals from my tax return.

You pay off $6M mortgage, have $4M in “cash” but only a $2M taxable gain ($300-$400k?).